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You have a parent who may need nursing care at some time




Question;1. You have a parent who may need nursing care at some time inthe future.You know the health insurance policy doesn?t coversuch expenses and that Medicare coverage is limited.Youshould considerA.disability insurance.B.extended senior health care coverage.D.long-term care insurance.2. You?re the sole source of income for your family and your jobrequires you to be in good physical condition.You?re concernedthat an injury could prevent you from performing your work.Youshould considerA.long-term care insurance.B.extended HMO.C.disability income insurance.D.Medicare.3. You?re reviewing your homeowner?s insurance policy to identify perils. Which one of thefollowing might be listed in that section of the policy?A.Liability exposure C.Indemnity principleB.Insurable interest D.Fire and smoke4. You?ve elected to purchase a participating policy and will therefore have the potential value. rates.B.extended benefits. D.policy dividends.5. The settlement option chosen by most beneficiaries isA.lump sum. C.fixed amount.B.interest only. D.fixed time.6. The least expensive form of permanent insurance protection isA.term. payment.B.straight life. D.universal.7. Commonly, surgical expenses are covered on the basis ofA.actual surgical expense.B.listed benefit schedules.C.specific percentage of surgical expense.D.average national cost of the surgery.8. Even though your insurance company issued you a policy after reviewing your applicationfor insurance, it can still withdraw the policy for certain reasons if the _______ clause is inthe policy.A.incontestability C.loss preventionB.underwriting D.risk assumption9. The best way to determine if you need life insurance and how much you need is to use the_______ approach.A.multiple earnings C.future valueB.needs security10. After the insurance company reimbursed you for the loss related to property you insured, itmade a request from the negligent party to recover its payment. It has the right to do thisunder the policy because of the right ofA.subrogation. C.indemnity.B.coinsurance. D.negligent action11. To obtain insurance for any property, whether a home, an automobile, or other property,you must have a(n) C.insurable interest.B.premium. D.liability.12. In the United States, the right to continue a health insurance policy is provided by an actknown asA.UCR. C.HMO.B.SMI. D.COBRA.13. Government-sponsored programs can complement private health insurance programs. Ifyou?re injured on the job, you would be eligible for which government mandated program?A.Social Security MedicareB.Workers? Compensation InsuranceC.Supplementary Medical InsuranceD.Blue Cross/Blue Shield Worker Plan14. A liability suit could result whenA.lightning strikes your home.B.your son falls down the stairs of your home.C.your auto is stolen.D.a delivery person slips on the steps of your home.15. Collision protection pays for damage toA.non-auto property of insured. C.all autos in of insured. of other party in accident.16. Auto insurance is needed primarily because ofA.potential damage to auto. C.lender?s requirements.B.potential liability claims. D.state law.17. Universal life insurance is designed to offer advantages to the policyholder beyond lifeinsurance ?protection.? It also providesA.very cheap rates and cancellation privileges.B.short-term coverage and low rates.C.investment or savings and tax advantages.D.whole life and low rates.18. If you want to be able to decide how the savings component of your whole life insurancepolicy is invested, you should electA.straight life insurance. life insurance.B.continuous premium coverage. D.variable life insurance.19. You have a very old car and you know that you need collision insurance and liabilitycoverage.You don?t want to insure your car for any other damage. Therefore, you wouldn?telect to take out _______ coverage.A.uninsured motorist C.medical paymentsB.comprehensive D.bodily injury20. You have homeowner?s insurance and auto insurance, but due to your high net worthyou?re very worried about liability beyond the amounts covered in those policies.Youshould umbrella personal liability endorsement of loss policy.C.supplemental liability to the two policies.D.professional liability coverage.1. You noticed from the prospectus that the fund you?re consideringis advertised as a no-load investment company, but there arefees to cover marketing and distribution expenses. These feesare known asA.loads. expenses. D.12(b)-1 fees.2. You know that mutual funds can emphasize various investmentstyles or approaches.You?re looking for a diversified portfolio ofinvestment that generates significant capital appreciation andprovides current income form interest and dividends. The typeof fund you seek is a(n) _______ market mutual C.balancedB.growth-and-income D.bond3. You?re seeking a fund that mirrors the returns and risks of the Standard & Poor?s 500.Youshould consider a(n)A.growth fund. C.balanced mutual fund.B.stock unit investment trust. D.index fund.4. You?re young and have an investment plan that emphasizes growth.You have a hightolerance for risk. A high percentage of your savings for retirement should be invested market accounts. C.stocks.B.bonds. D.U.S. Treasury securities.5. You?re close to retirement and very adverse to risk.You should invest a high percentage ofyour assets inA.stocks. C.commodities.B.real estate. D.bonds.6. You?re seeking a diversified portfolio to cope with the various types of investment risks.You?re particularly concerned that the value of your securities may be influenced by theperformances of other investors. This risk is referred to as _______ C.interest D.liquidity7. You learned that if you take more risk you should require a higher rate of return. Inevaluating how much extra return you get for taking risk, you compare the return formthe investment under consideration toA.risk-free rate of return.B.the compound rate of return.C.the after-tax adjusted rate of return.D.yield to maturity.8. You?re concerned with the after-tax return from your investments. The lowest taxconsequence to a dividend or distribution will be fromA.ordinary dividends. C.stock dividends.B.short-term gain distribution. D.long-term gain distribution.9. The performance ratio that best measures the relative value of your investment in stock isA.return on equity. profit margin.B.price/earnings ratio. D.earnings per shareYou don?t want to invest in a limited partnership that isn?t listed on an organized exchangebecause it won?t be easy to sell if you need cash. The risk that best describes this problemis _______ risk.A.event C.financialB.purchasing power D.liquidity11. You?re concerned with maintaining your standard of living even after the effects of inflation.The risk that best describes this issue is _______ risk.A.event C.marketB.purchasing power D.liquidity12. You?ve purchased stock in a company from the underwriter of the company?s stock afterreviewing the prospectus for this initial public offering. Therefore, you purchase the stock inwhich market?A.Over-the-counter market C.The New York Stock ExchangeB.The secondary market D.The primary market13. The price of the majority of stocks has generally been rising steadily for the past year.This situation is an example of what kind of market?A.Bull market C.Growth marketB.Pig market D.Bear market14. Care should be exercised in selecting a securities brokerage firm even though such firmsare subject to enforcement regulations at the federal level from theA.National Association of Securities Dealers.B.Securities Investor Protection Corporation.C.Securities and Exchange Commission.D.Securities National Fraud Commission.15. Which of the following is an advantage of investing in mutual funds?A.Mutual funds offer a high level of convenience.B.Mutual funds allow you to target your investment onto one security.C.Individual investors personally manage the investment decisions.D.Mutual funds require a large investment from their investors.16. Bonds issued without coupons are called _______ coupon D.unsecured17. With respect to the return on your portfolio of securities, what factor will have the mostsignificant impact?A.Security selection C.Average ratingB.Average maturity D.Asset allocation18. A no-load fund has no _______ charges.A.transaction C.managementB.administrative D.tax19. Investment company earnings come gains.B.dividend from stocks.C.interest from bonds.D.interest, dividends, and capital gains.20. You?ve invested in a fund that holds commercial office buildings and apartments. The fundmust distribute its earning to its shareholders.You own shares in a(n)A.real estate investment trust.B.closed-end investment company.C.unit investment investment company1. You?re interested in a retirement plan for employees that allowsthem to invest before tax dollars in a tax deferred saving plan.You should consider aA.guaranteed investment contract.B.401(k) plan.C.profit-sharing plan.D.qualified pension plan.2. Which of the following is a correct statement about a will?A.If there?s no tax clause in a will, no taxes need be paid.B.If there?s no tax clause in a will, the apportionmentstatues apply.C.If there?s no tax clause in a will, an attorney will calculate them.D.If there?s no tax clause in a will, the disposition provisionapplies.3. Which of the following is a correct statement regarding a deferred annuity?A.It?s an excellent savings and retirement vehicle even though it has no tax advantages.B.It has a limitation in that you must pay for the entire annuity with a single up frontpayment.C.It can?t be used very well with an estate plan because it has no survivorship benefit.D.It?s the opposite of life insurance since it provides for the systematic liquidation ofsavings.4. The aging of Americans will have an economic impact on social security trust funds andprivate pensions based on projections during the next twenty years. What best describesthe aging demographics in terms of the percentage of the population over age 65?A.Stable C.Slight increaseB.Declining D.Substantial increase5. With respect to social security benefits, which statement is true?A.Benefits are calculated solely based on payments to the trust fund.B.Benefits are based solely on need.C.If you retire at age 62, your benefits will be reduced.D.You can receive full benefits with twenty quarters of wages subject to FICA.6. The government has passed an important law that protects employees who participate in aprivate pension plan. This law is known as theA.Employee Pension Protection Act.B.Employee Retirement Income Act.C.Pension Benefit Guaranty Act.D.Pension and Retirement Income Act.7. Who needs to develop an estate plan?A.Children who may inherit wealth in futureB.Only very wealthy peopleC.Only married couplesD.Anyone that wants to control the disposition of assets upon death8. Your real and personal property that can be transferred according to the terms of a will iscalled yourA.gross estate. estateB.Probate estate. D. estate.9. Your probate estate includesA.assets held in revocable trusts out of your control.B.all assets, real and personal, that are owned in the name of the decedent.C.all assets in which the decedent had any direct or indirect beneficial interest.D.only intestate assets.10. Life insurance could alleviate estate problems caused byA.inflation. C.disabilities.B.improper management. D.lack of liquidity.11. You?re in a pension plan that requires the company to fund the pension benefits andtherefore bear the pension costs. This pension plan is considered a _______ plan.A.noncontributory C.contributoryB.vested rights D.defined contributory12. You?re a participant in a pension plan that offers a specific payment formula of benefitswhen you retire. What kind of plan is this?A.Defined contribution plan C.Vested rights planB.Noncontributory plan D.Defined benefit plan13. Your company wants to deduct its contributions to the pension plan as a tax deductibleexpense and has applied to the Internal Revenue Service to treat the plan as a _______plan.A.IRS approved pension C.qualified pensionB.ERISA pension D.funded pension14. You want to start planning for retirement and you learned about the mistakes that peopleoften make. Which of the following is a retirement planning mistake?A.Saving too much C.Starting to invest too lateB.Investing in an IRA D.Investing for the long-term15. A key factor in setting your retirement goals in relation to the amount of money you musthave to retire isA.where you want to live.B.your hobbies.C.your planned age at retirement.D.the types of retirement plan you have.16. After you?ve completed a detailed projection of your living expenses requirements atretirement, you must apply an expense factor to account forA.uncertainty. C.mortality.B.investment results. D.inflation.17. You?re 95 years old and under the care of a trusted grandson.You decide that you want togive all your assets away to your relatives to avoid having a will and trust so that there willbe little in your estate to probate. A significant flaw of such a plan don?t know how to divide it up taxesB.state law requirements to have a witness D.inheritance18. Which of the following is true?A.A will can never be revoked.B.A will doesn?t need to be in writing or have a witness.C.The testator of the will is also the executor.D.An order to change a will is a codicil.19. A provision that will determine what type of health care you receive in a terminal illness isA.a living will. C.power of attorney.B.joint tenancy. D.a living trust.20. You aren?t married. Which form of property ownership can?t exist in your estate?A.Joint tenancy with right of survivorship C.Single ownershipB.Tenancy by the entirety D.Beneficial ownership in trust="border:>


Paper#58255 | Written in 18-Jul-2015

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